Cost of Capital: AMD and Duke Energy
Using the publicly available data, we estimated the weighted average cost of capital of the AMD and Duke Energy. For the AMD, the WACC is 10.83%. For Duck Energy, the WACC is 2.76%
When we calculate those number, we need to know the equity and debt of the company which can easily find on yahoo finance. The cost of debt and the corporate tax rate that we calculated are also based on the data from yahoo finance. We made Beta for the companies with 10 year ranges and use it to calculate return of equity. After we got those number, we can calculate the WACC.
Advanced Micro Devices
Bate—2.33
Corporate tax rate – 2.79%
Returns of Equity – 11.29%
WACC – 10.83%
Duke Energy
Bate – 0.36
Corporate tax rate – 28.76%
Returns of Equity – 4.104%
WACC – 2.76%
The data we list above, show the major difference between two companies. The Bate of AMD is higher than Duke which means if you want to invest AMD you will bear higher risk than Duck. However, high risk also come with high return, the WACC of AMD is higher than Duck. Duke also need to pay a lot of tax, so its Returns of Equity is lower than AMD.
Using the publicly available data, we estimated the weighted average cost of capital of the AMD and Duke Energy. For the AMD, the WACC is 10.83%. For Duck Energy, the WACC is 2.76%
When we calculate those number, we need to know the equity and debt of the company which can easily find on yahoo finance. The cost of debt and the corporate tax rate that we calculated are also based on the data from yahoo finance. We made Beta for the companies with 10 year ranges and use it to calculate return of equity. After we got those number, we can calculate the WACC.
Advanced Micro Devices
Bate—2.33
Corporate tax rate – 2.79%
Returns of Equity – 11.29%
WACC – 10.83%
Duke Energy
Bate – 0.36
Corporate tax rate – 28.76%
Returns of Equity – 4.104%
WACC – 2.76%
The data we list above, show the major difference between two companies. The Bate of AMD is
When we calculate those number, we need to know the equity and debt of the company which can easily find on yahoo finance. The cost of debt and the corporate tax rate that we calculated are also based on the data from yahoo finance. We made Beta for the companies with 10 year ranges and use it to calculate return of equity. After we got those number, we can calculate the WACC.
Advanced Micro Devices
Bate—2.33
Corporate tax rate – 2.79%
Returns of Equity – 11.29%
WACC – 10.83%
Duke Energy
Bate – 0.36
Corporate tax rate – 28.76%
Returns of Equity – 4.104%
WACC – 2.76%
The data we list above, show the major difference between two companies. The Bate of AMD is higher than Duke which means if you want to invest AMD you will bear higher risk than Duck. However, high risk also come with high return, the WACC of AMD is higher than Duck. Duke also need to pay a lot of tax, so its Returns of Equity is lower than AMD.
Using the publicly available data, we estimated the weighted average cost of capital of the AMD and Duke Energy. For the AMD, the WACC is 10.83%. For Duck Energy, the WACC is 2.76%
When we calculate those number, we need to know the equity and debt of the company which can easily find on yahoo finance. The cost of debt and the corporate tax rate that we calculated are also based on the data from yahoo finance. We made Beta for the companies with 10 year ranges and use it to calculate return of equity. After we got those number, we can calculate the WACC.
Advanced Micro Devices
Bate—2.33
Corporate tax rate – 2.79%
Returns of Equity – 11.29%
WACC – 10.83%
Duke Energy
Bate – 0.36
Corporate tax rate – 28.76%
Returns of Equity – 4.104%
WACC – 2.76%
The data we list above, show the major difference between two companies. The Bate of AMD is